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23. On January 1, 2017, Andrew Software Services, Inc. purchased a new computer. The cost of...
On January 1, Year 1, Naples purchased a computer system that cost $1,480,000. The estimated useful...
On January 1, Year 1, Naples purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, Naples determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated salvage value will only be $10,000. Prepare the journal entry to record depreciation expense for Year 1. Prepare the journal entry...
5. Max Inc. purchased on January 2, 2017, equipment with a cost of $10,440,000, a useful...
5. Max Inc. purchased on January 2, 2017, equipment with a cost of $10,440,000, a useful life of 10 years and no salvage value. The Company uses straight-line depreciation. At December 31, 2017 and December 31, 2018, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2017 12/31/2018 Fair value less cost to sell $9,315,000 $8,350,000 Value-in-use $9,350,000 $8,315,000 There is no change in the asset’s useful life or...
Ayman Company purchased equipment on January 1, 2017 for $90,000. It is estimated that the equipment...
Ayman Company purchased equipment on January 1, 2017 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Instructions Answer the following independent questions. 1. Compute the amount of depreciation expense for the year ended December 31, 2018, using the straight-line method of depreciation. 2. If 16,000 units of product are produced in...
Wardell Company purchased a mini computer on January 1, 2016, at a cost of $42,550. The...
Wardell Company purchased a mini computer on January 1, 2016, at a cost of $42,550. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,300. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $930. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate....
Wardell Company purchased a mini computer on January 1, 2016, at a cost of $40,850. The...
Wardell Company purchased a mini computer on January 1, 2016, at a cost of $40,850. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,100. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $990. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate....
Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $49,000. The computer...
Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $49,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $7,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $400. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....
Wardell Company purchased a mainframe on January 1, 2016, at a cost of $40,000. The computer...
Wardell Company purchased a mainframe on January 1, 2016, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $400. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....
Wardell Company purchased a mainframe on January 1, 2016, at a cost of $53,000. The computer...
Wardell Company purchased a mainframe on January 1, 2016, at a cost of $53,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $800. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....
Problem 9-9A Ayayai Corporation purchased machinery on January 1, 2017, at a cost of $250,000. The...
Problem 9-9A Ayayai Corporation purchased machinery on January 1, 2017, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciatian methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years...
a. On January 1, 2017, Frances Corporation started doing business and the owners contributed $200,000 capital...
a. On January 1, 2017, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 2017, to December 31, 2018 c. On March 1, 2017, MSK Inc. entered into a consulting contract under which Frances Corporation promised to provide consulting to MSK Inc. In return, MSK promised to pay a fee of $150,000, which was to be...
Problem 9-9A Ayayai Corporation purchased machinery on January 1, 2017, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciatian methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years...
a. On January 1, 2017, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 2017, to December 31, 2018 c. On March 1, 2017, MSK Inc. entered into a consulting contract under which Frances Corporation promised to provide consulting to MSK Inc. In return, MSK promised to pay a fee of $150,000, which was to be...
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